Page 16 - Compendium of Law & Regulations

Customs Tariff Act, 1975

(ii) Government revenue that is otherwise due is foregone or not
collected (including fiscal incentives);

(iii) a Government provides goods or services other than general
infrastructure or purchases goods;

(iv) a Government makes payments to a funding mechanism, or
entrusts or directs a private body to carry out one or more of

the type of functions specified in clauses (i) to (iii) above which
would normally be vested in the Government and the practice
in, no real sense, differs from practices normally followed by
Governments; or

(b) a Government grants or maintains any form of income or price
support, which operates directly or indirectly to increase export of
any article from, or to reduce import of any article into, its territory,

and a benefit is thereby conferred.

(2) The Central Government may, pending the determination in accordance
with the provisions of this section and the rules made thereunder of the
amount of subsidy, impose a countervailing duty under this sub-section
not exceeding the amount of such subsidy as provisionally estimated by it
and if such countervailing duty exceeds the subsidy as so determined -

(a) the Central Government shall, having regard to such determination
and as soon as may be after such determination, reduce such
countervailing duty; and

(b) refund shall be made of so much of such countervailing duty which
has been collected as is in excess of the countervailing duty as so
reduced.

(3) Subject to any rules made by the Central Government, by notification in
the Official Gazette, the countervailing duty under sub-section (1) or sub-
section (2) shall not be levied unless it is determined that -

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